FOR IMMEDIATE RELEASE 99-47
SEC Continues Effort to Increase Competition in Post-Trade
Information Processing
Washington, DC, May 7, 1999 -- The Securities and Exchange
Commission today took further action in its continuing effort to
increase competition among services transmitting post-trade
information between broker-dealers and institutional customers.
The Commission approved proposed rule changes filed by the New
York Stock Exchange, the National Association of Securities
Dealers, and the Municipal Securities Rulemaking Board under
which qualified electronic trade confirmation vendors may provide
confirmation and affirmation services for institutional trades.
"The Commission is committed to making post-trade processing
as fast and as safe as possible. Today's actions will encourage
competition in the field of post-trade information processing on
terms that are consistent with the Commission's obligation to
ensure the safety and soundness of the national system for the
clearance and settlement of securities transactions. In
addition, these actions will greatly contribute to the
Commission's goal of shortening the settlement cycle for
securities transactions from three days to one day and will help
the industry achieve straight through processing," said Arthur
Levitt, Chairman of the Securities and Exchange Commission.
Previously, the NYSE, NASD, and MSRB's confirmation rules
required their members to use the services of a registered
clearing agency for the electronic confirmation and affirmation
of institutional trades. The Commission worked with these
entities and industry representatives to expand the scope of the
SROs' confirmation rules. This cooperation facilitated the
drafting of the revised confirmation rules that were approved
today.
The Commission also approved an application filed by Thomson
Financial Technology Services, Inc. that will allow it to provide
a comparison service that matches the trade data of broker-
dealers and their institutional customers. The application was
filed in response to the Commission's conclusion that entities
that provide trade matching services are "clearing agencies"
under the Securities Exchange Act of 1934.
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